Corporate Strategy Meeting For the Fiscal Year ending March 31, 2014

Transcription

1 Corporate Strategy Meeting For the Fiscal Year ending March 31, 2014 Sony Corporation 1) Assessment of the Current State and Direction of the Sony Group 4) Achieving Sony s Mission 1

2 1) Assessment of the Current State and Direction of the Sony Group 4) Achieving Sony s Mission 2 1) Assessment of the Current State and Direction of the Sony Group Value that only Sony can provide 3

3 1) Assessment of the Current State and Direction of the Sony Group 4) Achieving Sony s Mission 4 FY 2012 Consolidated Results Sales Net Income (Loss) 6, , FY 2011 FY 2012 FY 2011 FY

4 FY 2012 Results by Business 4, , ,007.7 Sales Operating Income (Loss) Electronics 5 segments Entertainment Financial Services 6 7

5 5 Key Initiatives Strengthening core businesses Digital Imaging / Game / Mobile Turning around the television business Expanding business in emerging markets Creating new businesses & accelerating innovation Realigning the business portfolio and optimizing resources 8 FY 2012 Management Strategies for Revitalizing the Electronics Business Defining business objectives Building a new management structure Accelerating decision-making and execution 9

6 Strategic Investments for New Business Creation and Strengthening Core Businesses, and Initiatives to Enhance Sony s Financial Foundations and Management Structure Announcement Closing Date Date Activity * * Acquired EMI Music Publishing Terminated joint venture with Sharp Corporation to produce and sell large-sized LCD panels and modules Increased stake in Multi Screen Media, a company operating television networks in India First half Increased production capacity for stacked CMOS image sensors Within 2013 Announced collaboration with Panasonic Corp. for joint development of next generation OLED panels Sold the chemical products related business Acquired US-based Gaikai Inc Made So-net Entertainment into a wholly-owned subsidiary Olympus Corp. issued new shares to Sony through a third-party allotment under a capital alliance agreement Established a medical business venture with Olympus under a business alliance agreement Accelerated restructuring initiatives for Headquarters and domestic Electronics businesses Issued yen-denominated convertible bonds due in * * Sold Sony Corporation of America s U.S. headquarters building Sold a portion of Sony s holdings of M3, Inc Sold the Sony City Osaki office building and premises Sold Sony s entire stake in DeNA Co. Ltd. * U.S. EST 10 Turning Around the Television Business Sales Operating Income (Loss) Profitability FY 2011 FY 2012 FY

7 Reinforced Sony s Sales and Marketing Operations in Emerging Markets 12 13

8 DSC-RX1 14 1) Assessment of the Current State and Direction of the Sony Group 4) Achieving Sony s Mission 15

9 FY 2014 Targets Group Sales 8.5 Trillion Yen OPM 5%+ ROE 10% Electronics Businesses Sales OPM 5% 6 Trillion Yen 16 Changes in the Market and Business Environment Rapid growth in the smartphone and tablet market Smartphone/Tablet Market AV Market FY 2011 FY 2012 FY 2013 FY 2011 FY 2012 FY

10 Key Strategies for FY 2013 Electronics Business Accelerate execution of updated strategies in the three core businesses (Mobile, Imaging, Game) Return the TV business to profitability Accelerate execution of growth strategies in emerging markets that leverage the overall strength of the Sony Group Reinforce new businesses (such as Medical and Security) to deliver sustained growth Further realign Sony s business portfolio Further Strengthen Profitability in the Entertainment and Financial Services Businesses Continue to Reinforce Sony s Financial Foundations 18 Mobile Smartphones/ Tablets Reduce time to market, quickly launch attractive products that showcase the power of Sony Reform cost competitiveness and operations including supply chains Strengthen relationships with key carriers and expand sales channels 19

11 Imaging -Image Sensors -Professional -Consumer Commercialize new image sensor technology and actively invest in expanding production capacity Expand applications of Sony s image sensors, and accelerate the shift of resources to growth areas (such as Security, Sports and Medical) Shift to high value-added lineup within consumer-use products 20 Game PS3: Maintain stable hardware and software sales and profits PS Vita: Secure further sales and profit through various hardware sales initiatives and the introduction of compelling software titles PS4: Expand business by providing new experiences 21

12 Three Core Electronics Businesses FY 2014 Targets Mobile (Smartphones/Tablets) Imaging Game Sales OPM 4% Sales 1.3 Trillion Yen OPM 10%+ Sales OPM 2% 1.5 Trillion Yen 1 Trillion Yen Sony is projecting approximately 65% of total sales and approximately 80% of operating income for the entire electronics business will be generated by these three businesses by FY TV Achieve profitability by enhancing product strength and continuing cost reductions Launch products that are tailored to local needs in emerging markets Bolster high value-added lineup with larger screen sizes and features such as improved picture and sound quality 23

13 24 Medical Establishment and growth of Sony Olympus Medical Solutions Inc. Strengthen the Life Electronics and Medical Key Device Businesses Create new business opportunities utilizing Sony Group s assets 25

14 Pictures Focus on the production of motion picture titles with high profit potential, and seek to grow profit through the expansion of the television production and television network businesses Music Increase market share by unearthing and nurturing new talent Further expand business by utilizing a rich content catalog Financial Services Steadily contribute to profit growth by continuing to provide high-quality services 26 1) Assessment of the Current State and Direction of the Sony Group 4) Achieving Sony s Mission 27

15 4) Achieving Sony s Mission 28

16 Cautionary Statement Statements made in this presentation with respect to Sony s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as believe, expect, plans, strategy, prospects, forecast, estimate, project, anticipate, aim, intend, seek, may, might, could or should, and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to: (i) the global economic environment in which Sony operates and the economic conditions in Sony s markets, particularly levels of consumer spending; (ii) foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony's assets and liabilities are denominated; (iii) Sony s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including televisions, game platforms, and smart phones, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing consumer preferences; (iv) Sony s ability and timing to recoup large-scale investments required for technology development and production capacity; (v) Sony s ability to implement successful business restructuring and transformation efforts under changing market conditions; (vi) Sony s ability to implement successful hardware, software, and content integration strategies for all segments excluding the Financial Services segment, and to develop and implement successful sales and distribution strategies in light of the Internet and other technological developments; (vii) Sony s continued ability to devote sufficient resources to research and development and, with respect to capital expenditures, to prioritize investments correctly (particularly in the electronics businesses); (viii) Sony s ability to maintain product quality; (ix) the effectiveness of Sony s strategies and their execution, including but not limited to the success of Sony's acquisitions, joint ventures and other strategic investments; (x) Sony s ability to forecast demands, manage timely procurement and control inventories; (xi) the outcome of pending and/or future legal and/or regulatory proceedings; (xii) shifts in customer demand for financial services such as life insurance and Sony s ability to conduct successful asset liability management in the Financial Services segment; (xiii) the impact of unfavorable conditions or developments (including market fluctuations or volatility) in the Japanese equity markets on the revenue and operating income of the Financial Services segment; and (xiv) risks related to catastrophic disasters or similar events. Risks and uncertainties also include the impact of any future events with material adverse impact.